Exploring the Current Trends in Avalanche Crypto
Over the past few months, Avalanche [AVAX] has been gradually increasing in value. It has risen by approximately 78% since hitting its lowest point on August 5th, almost three months ago. In comparison, Bitcoin [BTC] and Ethereum [ETH] have seen gains of 36.5% and 23.8% respectively during the same period.
This indicates that Avalanche cryptocurrency has surpassed the performance of the leading digital assets by a considerable margin. However, the token is not yet indicating a sustained uptrend.
Evaluating Avalanche’s Market Strength
Recent analysis revealed that Avalanche is not currently exhibiting a strong trend. The Awesome Oscillator histogram was close to zero, with red bars signaling a decline in bullish momentum. While the market structure remained bullish, the trend had slowed down over the past three weeks.
The DMI confirmed this observation, as the ADX (yellow) was below 20, indicating the absence of a significant trend. Moreover, the A/D indicator remained flat in October, suggesting a lack of consistent buying or selling pressure.
These indicators align with the price action, demonstrating the absence of a clear trend. Though some bullish signals were present, the $30 psychological level was acting as a strong barrier.
Unless trading volume increases, traders may anticipate a narrow trading range between $27.2 and $29.8.
Analyzing the Magnetic Zone at $30
Analysis unveiled that the $30 zone exhibited a concentration of liquidity, while the $27 region also showed high levels of liquidation interest. This observation hints at a potential consolidation phase for Avalanche crypto in the near future.
It remains uncertain which of the two magnetic zones will be tested first. Although the $30 zone is a more influential attractor, it is situated farther away. Consequently, traders are advised to view a retest of $27 as a buying opportunity and prepare to take action in response to a positive market reaction.
Disclaimer: The opinions expressed here are not intended as financial, investment, trading, or any other form of advice, but rather represent the writer’s personal perspective.